Europe backs Ukraine after Trump-Zelensky clash shocks world leaders

Prime Minister Pedro Sánchez announced a deal with Nato allowing Spain to opt out of a requirement to raise its defense spending to 5% of GDP, contrary to US President Trump's demands. This decision, made just before a crucial Nato summit, ensures Spain will maintain its commitment at 2.1% of GDP, while facing scrutiny amid corruption allegations within his government. Need More Context? 🔎

The Federal Reserve's preferred inflation indicator is expected to show a slight rise in price pressures for May, influenced by tariffs, with the personal consumption expenditures index forecasted to increase to 2.3% year-over-year. Meanwhile, Eurozone and UK economic data is being closely monitored, with expectations of modest improvements in PMIs amid ongoing trade uncertainties and inflationary pressures. Need More Context? 🔎

Donald Trump's second term poses a strategic challenge for Europe, prompting the EU to strengthen its autonomy and deepen integration, particularly in finance, energy, and defense. By leveraging its single market and euro, Europe has the opportunity to enhance its global role and economic resilience, ultimately achieving strategic autonomy in a rapidly changing geopolitical landscape. Need More Context? 🔎

Italy's right-wing government is set to reduce the value-added tax on art from 22% to 5%, responding to urgent calls from over 500 artists and galleries who warned of a potential collapse in the domestic art market. This tax cut, anticipated to be approved in a Cabinet meeting and requiring parliamentary ratification within 60 days, aims to enhance competitiveness against lower-tax countries like France and Germany. Need More Context? 🔎

ArcelorMittal Abandons Green Conversion Plans ArcelorMittal has abandoned plans to convert two German steel plants to hydrogen-based production, citing high energy costs and regulatory challenges, and is also considering shutting its green ethanol plant in Belgium due to unfavorable EU regulations. This decision undermines Europe's decarbonization goals and highlights the difficulties faced by the steel industry amid rising energy prices and competition. Need More Context? 🔎

This article discusses the EU's ongoing debate over energy policy amid the Ukraine war, highlighting Hungary's dissent against plans to halt Russian fossil fuel imports by 2028, led by Viktor Orbán’s government. While the EU seeks a shift to green energy and alternative gas sources, Hungary's reliance on Russian hydrocarbons poses challenges, reflecting broader tensions within the bloc regarding energy security and democratic principles. Need More Context? 🔎